Your pension is calculated as a percentage of your salary for each year and month you have been contributing to the Scheme.

The length of time you have been in the Scheme is called your Pensionable Service and the salary used is called your Final Pensionable Earnings, which are your earnings close to retirement.

The calculation of your pension changed in April 2016 so your pension is split into two parts that are calculated separately and then added together to get your total pension.

The pension accrued prior to April 2016 was converted to a percentage of your Final Pensionable Earnings referred to as the Past Service Percentage. Your Past Service Percentage can be found on the Confirmation Statement that we sent to you in 2016, or it can also be found on the annual Benefit Statements which we provide you with each year. To calculate your pension for service prior to April 2016, we take the Past Service Percentage and multiply this by your current Final Pensionable Earnings.

The pension accrued after April 2016 is calculated as follows:

1/60th of Final Pensionable Earnings less 1/60th of the Lower Earnings Limit (LEL) x Post 2016 Pensionable Service

Final Pensionable Earnings are the highest three-year average Gross Earnings ending in the last ten years prior to leaving or retiring from the Scheme. Gross Earnings exclude bonus payments, pay in exchange of non-cash benefits (e.g. car benefit payments) and pay in lieu of notice.


Andrew is retiring at age 65 on 5 April 2023, his Final Pensionable Earnings are £28,000, his Past Service Percentage is 35% and the LEL is £6,396. As Andrew's retirement date is in the 2022/23 tax year the LEL for this year is used. The LEL remains at £6,396 for the 2023/2024 tax year. 

Andrew’s pension accrued prior to April 2016 is:

Final Pensionable Earnings


Past Service Percentage


Pension accrued to April 2016




As Andrew is retiring on 5 April 2023, he has completed 7 years exactly as only complete months are included in the calculation so his pension accrued after April 2016 is:

1/60th of Final Pensionable Earnings


1/60th of Lower Earnings Limit


Number of complete years and months


Pension accrued after April 2016





So, Andrew's total pension is:

Pension accrued to April 2016


Pension accrued from April 2016


Total pension



£12,320.52 per year

The total pension is rounded up so that it is divisible by 12.